Welcome to Issue 53 of The Property Development Review, exclusively for agents, developers and investors.
JUNE / JULY 2024 - ISSUE NUMBER 53
EXCLUSIVELY FOR PROPERTY DEVELOPERS, INVESTORS & AGENTS ACROSS ASIA-PACIFIC
LISTINGS The latest commercial assets and development site opportunities across Australia.
INTERVIEWS We speak exclusively to Australia’s best business and property leaders.
ANALYSIS Unique perspectives from the deal-makers on the ground.
2 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
FROM THE CEO
Welcome to our June/July edition of the Property Development Review. The Ready Media Group have been challenging the online, commercial property industry, status quo since 2014. And in 2024, our responsibilities have never been greater. That’s why we’re working harder than ever to ensure our clients and their vendors are supported with best-in-class digital, technology, and creative solutions. We recently conducted a customer sentiment survey*, to help us understand what we are doing well, and areas where we can provide better value for our client partners. We were humbled by the results. 10 years of challenge, innovation, and importantly, hard work have led us to achieve some resounding results. Rated #1 for quality buyer leads* Rated #1 for customer service* 80% of respondents nominated the Ready Media Group as their preferred marketing supplier* In this edition, we drill down on the land sub-division vertical, with national insights from Australia’s leading agents and agencies. In this month’s The Interview series, Rob Langton speaks with Jamie Pherous, Founder & Managing Director of Corporate Travel Management. Launched in 1994 as a start-up with just two personnel, Corporate Travel Management (CTM) has since grown to become one of Australia’s largest home-grown business success stories, currently boasting a market capitalisation in excess of $2.2bn, and some 3,000 staff stationed across Europe, North America and Asia. Continuing the series, Rob Langton sits down with the Founder and Principal of Australian Country Choice Group, Trevor Lee .
In this exclusive profile, Trevor charts his incredible journey, from being told his academic future was limited, to working the harsh lands of Queensland’s remote environments. This ultimately culminating in the decision to follow his instincts and launch his own a business; a business which pioneered not just an industry, but a nation too. We also feature key topical content from The Urban Developer’s Clare Burnett, who explores the changing landscape of greenfield developments in Australia. Phil Bartsch joins us to discuss a triple-tower precinct-defining vision revealed for an inner-city site between the Brisbane River and the banks of Breakfast Creek. Furthermore, Savills’ Amy Bowater and Robert Dunne analyse Australia’s property market’s significant transformation, driven by a potent combination of robust population growth and limited new housing supply. As always, we feature the latest key
EDITOR IN CHIEF Frank Materia frank@ readymedia.com.au
IN-HOUSE WRITER Oliver Gregurek
ADVERTISING OPPORTUNITIES frank@ readymedia.com.au PROPERTY LISTING ENQUIRIES info@ readymedia.com.au EDITORIAL ENQUIRIES editor@ readymedia.com.au CONTACT Ready Media Group Head Office Level 3 161 Buckhurst St South Melbourne VIC 3205 03 9631 5476 info@ readymedia.com.au
commercial and development sites for sale across the country, noteworthy transactions and market insights. Enjoy the read! Nick Headshot - TPDR Intro Page
MAGAZINE DESIGN Nespecart
ON THE COVER Rooftop
NICK MATERIA CEO - Ready Media Group
June / July 2024 – 3
At Rooftop , we take great satisfaction in producing campaigns that not only win awards but also attain successful commercial outcomes. Our mission is to take your campaign to the next level.
Get in Touch hello@rooftop.studio
4 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
June / July 2024 – 5
THE PROPERTY DEVELOPMENT REVIEW
Targeted Developer Leads
Lifetime Campaign Support
Transparent Pricing
Be Where The Buyers are.
Access Australia’s most active developer & investor database. Since 2015 we’ve cultivated a targeted and active audience-base to provide each development site marketing campaign with high volumes of qualified buyer leads. Every resource you need to generate targeted leads are built into our marketing packages at the one transparent cost. Why be anywhere else? Be where the buyers are. Be Where The Developers Are. Access Australia’s most active developer & investor database. Since 2015 we’ve cultivated a targeted and active audience-base to provide each development site marketing campaign with high volumes of qualified buyer leads. Every resource you need to generate targeted leads are built into our marketing packages at the one transparent cost. Why be anywhere else? Be where the developers are.
6 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
CONTENTS
8 THE INTERVIEW JAMIE PHEROUS Corporate Travel Management 10 THE INTERVIEW TREVOR LEE ACC Group
20 MARKET MOVES The Latest Transaction Activity & Key Deals
52 VIC MARKET OVERVIEW Peter Sagar Paul Callanan Darcy Tobin LAWD
MARKET MOVES
22 UPCOMING COMMERCIAL AUCTIONS Auction Hub
86 QLD MARKET OVERVIEW Ryan Langham RWC Burleigh Group 112 SA MARKET OVERVIEW Jack O’Leary JLL Adelaide 120 WA MARKET OVERVIEW Brett Wilkins RWC WA 30 NSW LISTINGS 54 VIC LISTINGS 88 QLD LISTINGS
Auction Hub
Auction Hub
Auction Hub
Upcoming
Auctions
Upcoming
Auctions
12 LAND SUBDIVISION Demographic Tailwinds Boosting Australia’s Residential Market Amy Bowater and Robert Dunne at Savills
84 BRISBANE DEVELOPMENT Triple Towers to Transform Brisbane’s 26 NSW DEVELOPMENT Lowrise Shoptop Mooted for NSW Coastal Village Breakfast Creek Phil Bartschthu Urban Developer 28 NSW MARKET OVERVIEW David Hall & David Curtis Cushman & Wakefield
14 INNOVATION Aussie company
builds first 3D printed two-storey building in Southern Hemisphere
18 GREENFIELD Australian Greenfield Dream ‘Needs Reimagining Clare Burnett Urban Developer 16 MEGA PROJETCS The Mega-Projects Shaping Australia’s Future Marisa Wikramanayakethu Urban Developer
122 WA LISTINGS 134 ACT LISTINGS 136 TAS LISTINGS 114 SA LISTINGS
to nspect, nvest, or Vst
to nspect, nvest, or Vst
June / July 2024 – 7
The Interview - EXCLUSIVE
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL 35 MINUTES
JAMIE PHEROUS
With Rob Langton
CORPORATE TRAVEL MANAGEMENT
Joining our program on this episode is prolific entrepreneur Jamie Pherous - Founder & Managing Director of Corporate Travel Management. Launched in 1994 as a start-up with just two personnel, Corporate Travel Management (CTM) has since grown to become one of Australia’s largest home-grown business success stories, with the firm boasting a market capitalisation in excess of $2.2bn, revenues exceeding $500m per year and some 3,000 staff stationed across the World including in Europe, North America & Asia (as at May, 2024). Born into humble beginnings in Brisbane’s Western Suburbs, Jamie was surrounded by business from an early age through his parents who were involved in a number of ventures spanning the retail & fashion industries - in 1985, he graduated Brisbane Grammar School and eager to ‘get ahead and make money’, enrolled in a Bachelor of Commerce degree at the University of Queensland specialising in law and statistics. Following completion of his tertiary studies in 1988, he initially sought to pursue a career as a stockbroker but soon landed on a graduate role with accounting firm Arthur Anderson, a business in which over the course of the ensuing six or so years, led him to working across the company’s business services & financial consulting divisions across Australia, Asia & the Middle East. Armed with first-hand experiences in and knowledge of the monopoly being held by global players in the corporate travel industry, he established Brisbane-based Corporate Travel Management in 1994
8 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
supported by innovative technology, and demonstrating a strong return on investment to the corporate travel budget. Throughout the course of the next sixteen years, Corporate Travel Management under Jamie’s leadership grew strongly, with the firm listing on the ASX in December 2010 at $1 per share and with a market capitalisation of $70m. Fast-forward to 2024 and Corporate Travel Management now trades above $15, has a market capitalisation above $2bn and provides service solutions in more than 100 countries through its extensive global network. In this exclusive interview, Jamie unpacks his background, the launch and evolution of CTM, the fundamentals required for delivering sustained success & the opportunities and challenges he’s encountered across a corporate career spanning more than three decades.
June / July 2024 – 9
The Interview
SCAN OR CLICK TO WATCH THE VIDEO INTERVIEW IN FULL 82 MINUTES
TREVOR LEE
With Rob Langton
ACC GROUP
Joining our program on this episode to share what is undoubtedly one of Australia’s most remarkable self-made business success stories is Trevor Lee, Founder & Principal of Australian Country Choice Group- the largest & most successful, privately-owned, vertically integrated beef processing company in Australia. Now in its third generation of family ownership, ACC Group’s foundations were initially seeded by Trevor’s father Norman Lee in the 1960’s, himself a self-made businessman whom despite overcoming a number of personal & professional challenges, grew the family’s single-truck backyard business HJ Lee & Son Pty Ltd, into Queensland’s largest trucking operation incorporating in excess of 100 Caterpillar earthmoving machines & some 500 personnel within just 15 years. Following the sale of HJ Lee & Son, Norm acquired Brindley Park in 1969, a 13,000-acre parcel of undeveloped land in the rural Queensland town of Roma that became the launching pad for his son Trevor Lee, who aged just twenty, painstakingly re-developed the property over a number of years. Through extraordinary vision & tenacity, Trevor studied the dynamics of cattle production & processing both domestically and in the US throughout the 1970’s, analysing the inefficiencies that existed in conventional supply chains as well as the recurring economic & environmental challenges that had dictated the framework & methodology through which Australian beef producers had long operated under the assumptions of.
10 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
Utilising a combination of hard-work coupled with a willingness to challenge the status-quo, Trevor embarked on an ambitious pursuit to transform Australia’s beef industry, implementing a number of innovative measures including pioneering the use of large-scale feedlots for production consistency, reducing supply chain constraints through breeding, feeding & fattening livestock within the one facility (whole-of-chain) and establishing direct-to-consumer, contractual partnerships with National supermarket retailers including Coles & Woolworths. From its inception in 1974, Australian Country Choice Group has evolved markedly over the past five decades to now hold the title of the largest family-owned, vertically integrated beef supply chain company in the World, comprising some thirty-four properties across Australia totalling in excess of four million acres through which more than 350,000 head of cattle are processed each year by 1,500 plus staff - ACC is also the third largest cattle owner and the third largest landholder in Australia. In this rare & exclusive profile of one of Australia’s most successful yet private businessman, Trevor charts his incredibly journey, from being told his academic future was limited whilst a student at Brisbane’s Anglican Church Grammar School, to working the harsh lands of Queensland’s rugged, remote environments, ultimately culminating in the decision to follow his instincts & launch his own a business - a business which has changed not just an industry, but a Nation too, all the while cementing his legacy & the legacy of future generations of the Lee Family for decades to come.
June / July 2024 – 11
Land Subdivision
DEMOGRAPHIC TAILWINDS BOOSTING AUSTRALIA’S RESIDENTIAL MARKET
By Amy Bowater and Robert Dunne at Savills
Australia’s property market is undergoing significant transformation, driven by a potent combination of robust population growth and limited new housing supply.
12 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
The resulting demand-supply imbalance has fuelled a remarkable recovery in the housing market, setting the stage for future growth in residential property prices despite higher interest rates. Here we look at the tailwinds impacting land subdivision, the opportunities and challenges faced by the sector and emerging trends shaping the future of residential land development. DEMAND-SUPPLY IMBALANCE FUELS PRICE GROWTH Australia’s housing market recovery is largely attributed to a significant mismatch between housing demand and supply. Population growth, particularly from net overseas migration, has surged, contributing to increased demand for housing. In the year leading up to Q2 2023, net overseas migration reached approximately 518,000 people, marking the highest annual rate ever recorded. This influx contrasts sharply with the pandemic-induced decline of around 94,000 migrants in the year to Q1/2021 when Australia’s borders were closed. Among the states, Victoria is experiencing its fastest population growth since 2016 at 2.4%, while New South Wales sees its most significant increase in over four decades at 1.9%. Queensland has also seen a surge, with population growth over the past 16 years averaging 2.3%. This population boom, coupled with limited new housing supply, is expected to continue driving residential property prices upward. GREENFIELD DEVELOPMENT: A STRATEGIC MOVE Greenfield development has emerged as a strategic focus for private developers with the approach offering several advantages: Blank Canvas: Greenfield land provides developers with a pristine canvas, free of existing structures. Without the need for demolition or reconstruction, more budget can be allocated to innovative design and construction, potentially enhancing overall return on investment. Creativity Unleashed: Located on the outskirts of expanding cities, greenfield sites offer ample room for creative solutions. Developers can anticipate the future needs of a growing demographic, whether in housing, economic development, or mixed-use spaces. Unlike reactive solutions, greenfield projects allow forward-thinking designs that align with sustainability and eco-friendly practices. Technological Advancements: Greenfield developments can leverage cutting-edge technology and methodologies. Unlike older sites, which may have limitations, greenfield projects can incorporate modern designs, robust buildings, and eco-friendly solutions. CHALLENGES AND CONSIDERATIONS Despite its potential, greenfield development comes with significant challenges. Environmental concerns, such as encroaching on natural landscapes and bushfire hazards, require thoughtful planning. Additionally, infrastructure development is crucial. Roads, water, energy, sewerage, and internet coverage must be coordinated to ensure successful greenfield projects, all elements essential to the continued expansion of Australia’s cities. NEW TRENDS IN LAND SUBDIVISION Several emerging trends are set to shape the future of residential land subdivision, promoting growth and sustainability: SUSTAINABLE DEVELOPMENT: There is increasing interest in sustainable development, which supports cost reduction over the life of the dwelling. Future developments are expected to advance sustainability initiatives such as eco-friendly design and materials, climate control, energy efficiency, and water-saving management systems. AGING POPULATION: The growing segment of the aging population will see continued expansion in retirement and land lease community living. These communities provide downsizers with security, healthcare, recreational, and community facilities, unlocking much- needed housing accommodation. TECHNOLOGICAL INTEGRATION: The integration of smart technology in homes and communities is becoming more prevalent. This includes smart grids, energy- efficient appliances, and automated systems that contribute to the overall sustainability and efficiency of new developments. In conclusion, Australia’s housing market is poised for continued growth, fuelled by robust population increases and strategic greenfield development. As developers seize these opportunities, they must balance innovation with environmental responsibility to create sustainable communities for the future. By embracing new trends in sustainable development and addressing the challenges associated with greenfield projects, the land subdivision sector can play a pivotal role in shaping Australia’s property landscape for years to come.
June / July 2024 – 13
Innovation
AUSSIE COMPANY BUILDS FIRST 3D PRINTED TWO-STOREY BUILDING IN SOUTHERN HEMISPHERE
Australian 3D printing company builds two storey house in 32 hours
World leading Australian 3D printing technology company, Luyten 3D, has just completed another significant milestone in its journey to push the boundaries of 3D construction technology.
But according to Australian REIT analysts, although the step is Already dubbed one of the most successful 3D printers manufacturing companies in the building and construction sector worldwide, Luyten 3D has further augmented its reputation for innovation and excellence with the printing of a two-storey building in Melbourne, Australia. Luyten 3D was the first 3D printing technology company to build a home in Australia and the southern hemisphere using its cutting-edge mobile 3D printer, the Platypus X12, and the firm has now become the first to build a two-storey building using this technology. “We are extremely proud to become the first ever 3D printing company in the building and construction sector to deliver on such a monumental achievement. The double storey building is a two-level granny flat designed to create an instant yet stylish small format living space,” Ahmed Mahil said. Ahmed Mahil is the founder, CEO and Global president
of Luyten 3D, an award-winning Australian large scale 3D printers manufacturing company which designs and manufactures the most advanced and innovative range of mobile 3D printers and 3D printing mix for the building and construction sector. The two-storey granny flat was printed in one go at the company’s global headquarters in Melbourne, Australia. Luyten 3D printed the structure using the Platypus X12 printer, the largest printer in its fleet of 3D printers. The Platypus X12 is the largest mobile AI powered 3D printer in the world. It is transformative in operation and can convert from a compact size to six metres in height and 12 metres in length and print using a self-propelled crane which enables it to adjust and move with ease into difficult-to-access spaces and across large sites to print 3D structures. The two-storey granny flat which comprises two bedrooms, a kitchen, bathroom and living area, only took 32 hours to
14 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
build in total involving two staff over two and a half day shifts. It is 11 metres wide, 3.2 metres deep and six metres high including the skillion roof. “To date, building a double storey structure using 3D printing has been problematic as some firms in the northern hemisphere have only been able to do this by using fixed gantries which are notoriously expensive to operate and dismantle. For those with mobile gantries they have had to print in separate stages by hoisting up a 3D printer to the second floor or use very expensive repurposed boom trucks which require large areas to operate,” Mahil said. “Through our telescopically transformative Platypus X12 printer, we have made it possible for this printing to happen seamlessly in one printing session without the need for the involvement of any other heavy machinery. “In essence, we have solved one of the industry’s biggest challenges - how do we print more than one storey of building in one go. Our Platypus X12 does this with simplicity and ease. The flexibility and manoeuvrability of the Platypus X12 printer was able to scale up to two levels quickly and easily without any issues.” Luyten 3D also used their proprietary concrete mix, Ultimatecrete Ultraeco product to print the two storey granny flat. “Our newly launched Ultimatecrete Ultraeco mix is an extremely high performing mix which uses 20 percent less cement than the original ecofriendly Ultimatecrete while at the same time delivering increased sustainability,” Mahil said. Mahil emphasised that the two-storey granny flat is now a prime example of the benefits of 3D printing for the housing sector, especially in light of the federal government’s affordable housing initiative. “We have demonstrated that using our cutting-edge technology that anything is possible. 3D printing can help to ease the building
crisis sweeping the country and the industry needs to embrace 3D printing to galvanise the industry’s long-term future,” he said. “Traditional building methods are proving too costly for an industry that has operated on fixed cost contracts and archaic building practices. On top of this labour is becoming scarcer and building materials are also proving difficult to source and this is driving up the cost of doing business. “3D printing significantly reduces build time and cuts costs for the creation of the structural framework. Rather than laying bricks and building walls, 3D printing simply prints the structure so that trades can then install the final elements. “We have demonstrated the versatility of 3D printing through the build of a two-storey granny flat. While printing, two people operated the concrete pumping system and were on hand to immediately address any issues identified through our multi- sensory feedback systems. “The printing process is easy, low risk and highly productive. 3D printing isn’t just for basic structures. As we have shown, 3D printing is capable of delivering a broad range of properties for a range of different and challenging locations. “The Platypus X12 can easily print a two-storey dwelling capable of providing a stylish and comfortable living space for occupants. The product is fast drying, highly durable and capable of withstanding significant weather events, making it ideal for remote living conditions as well.” Luyten’s cutting edge 3D printer technology enables builders to transform construction projects that would traditionally take months or years to complete and instead finish them within a number of days. The 3D concrete printing revolutionary technology enables 60 percent reduction of construction waste, 70 percent reduction of production time, and 80 percent reduction of labour costs when compared to hands-on construction projects.
June / July 2024 – 15
Mega-Projects
THE MEGA-PROJECTS SHAPING AUSTRALIA’S FUTURE
Author: Marisa Wikramanayakethu Urban Developer
For a country as old as Australia, there is often the notion that somehow the landscape stands still, unchanging, outside natural disaster.
project is estimated to cost a total of $216.7 billion to build and operate the North and East sections from 2019-2084, according to a Victorian Parliamentary Budget Office report released this year. The 19km North section will cost $132.5 billion while the 26km East
But the Australian landscape has always been changing, as nature and humans made their marks. Across its modern history, placemaking and nation-building have significantly changed the face and shape of the nation. Such project bring opportunities—for construction, for development, and more. Here, then, are the top mega-projects that will shape Australian into the near future. As Australia’s population grows, the demand for transport infrastructure has to keep pace. Settlement and development patterns have historically followed transportation lines—if the people cannot get there, they cannot live or work or shop there, and developers cannot sell or lease there. And as our consumption patterns change, Australia’s ability to move people and goods around effectively has been thrown into stark
section will cost $84.1 billion over that period. Building just the East section will cost $34 billion.
The 1700km Inland Rail freight project , sorely needed as we move more to online purchases and delivery across the country, is estimated to cost $31.4 billion. Melbourne’s Metro Tunnel project has also blown out by $2 billion on top of its original $11 billion but is expected to be completed by 2025 with two of the five stations already completed. Its Airport Rail project, estimated to cost $13 billion, has also ground to a halt as mediation continues between the Victorian Government and Melbourne Airport about whether the station should be above or below ground. The Sydney Metro Rail project to deliver 113km of new metro rail has now blown out to $18.5 billion from its previously estimated $11.5 billion to $12.5 billion. Road projects are also under way with 133km of roads built as part of the WestConnex project to connect the Sydney airport, port and CBD with Western and South West Sydney, costing $16.8 billion. Upgrading the Bruce Highway from Brisbane to Cairns to benefit 58 per cent of Queensland’s population will cost about $13 billion for 1700km of road. Meanwhile, cost hikes have caused John Holland and CPB
contrast against the infrastructure of other countries. But it is currently costly to build and develop transport
infrastructure—the lack of the very infrastructure we are trying to build plays a role as the expense to transport materials from overseas and a lack of domestic manufacturing pushes costs up. Economic conditions have also helped drive wages up, increasing the cost of labour. The money to build the infrastructure comes out of the taxpayer’s pocket meaning that the more a government needs to spend as costs blow out, the more money needs to be taken from other services that would otherwise be funded in a Budget. And costs are blowing out: Melbourne’s Suburban Rail Loop
16 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
The project when fully complete will provide 17-20gW of energy with some of that energy going to Darwin and the rest to Singapore. In Western Sydney, the new Nancy Bird-Walton Airport will cost $11 billion and be completed by 2026. Further north in Queensland, about $429 million has been spent on redeveloping the Cairns Marine Precinct to service an increased demand for tourism, fishing, shipping and defence capabilities. In the West, the WA and the federal governments have chipped in a total of $544 million for constructing Lumsden Point at Port Hedland. In 2022, Port Hedland marked the biggest port project globally with BHP working on developing and improving it to allow for easier resource transportation. Across the country, new precincts and communities are being created as demand grows for housing and services. Sometimes, as in the case of Aerotropolis in NSW, the demand is big enough for a state government to consider creating a whole new capital city. Aerotropolis, along with Parramatta and Sydney, will function as part of a trio of major cities with work under way to build the Western Sydney Airport, set up transport networks and corridors and develop whole new areas into suburbs with new and infill housing around it. The Aerotropolis Precinct Plan and the Bradfield City Masterplan have been created to help drive development in the area and are currently being finalised or exhibited for consultation. However, the largest health precinct in Australia is located in Melbourne in the Parkville Biomedical Precinct. The Victorian government is spending $6 billion over 12 years to redevelop and expand the Royal Melbourne Hospital and the Royal Women’s Hospital with 1800 new beds provided and a new biomedical precinct in Arden. Arden and Parkville will be connected to each other by the Metro Tunnel project. Construction is slated to start in 2025 once the Metro Tunnel is completed and is expected to last six years until 2031. Another $1.7 billion is also being spent to create the country’s largest arts precinct in Melbourne with the transformation of the Melbourne Arts Precinct. The precinct extends from Federation Square to Southbank and takes in the banks of the Yarra River. It includes work started on the Arts Centre in 2023 and the Greenline Project to transform the northern bank of the Yarra River. There will be 18,000sq m of new green open space and a new gallery, The Fox: NGV Contemporary space. In Queensland, the City of Greater Springfield, has come out on top as the country’s largest master planned city at 2860ha. Springfield City Group, Lendlease and Mirvac developed the city at a cost of $32 billion.
Contractors to pause works on Melbourne’s West Gate Tunnel project and sue the Victorian Government with the initial costs estimated at $6.7 billion. Other projects include Victoria’s North East Link ($3.3 billion), Sunshine Coast Rail ($1.15 billion) and Perth’s METRONET system upgrades ($1.4 billion) with the entire METRONET project costing $10.5 billion across 72km of rail and 18 stations. Population growth has led to demand for housing in areas in desperate need of adequate trunk infrastructure prior to residential development proceeding. Peri-urban and regional councils often cannot cope with the cost of providing such trunk infrastructure, and neither can developers. The situation becomes more acute as new areas are opened up for residential development and new communities form. Meanwhile, demand for services also increases in already established settlements and changing values and a climate crisis have now meant a shift in how Australia’s population finds its water and energy. When he assumed power in 2022, South Australian premier Peter Malinauskas promised that the South Australian Northern Water Pipeline would go ahead. The project aims to take pressure off existing water infrastructure and to supply water for regional communities as well as large energy and mining projects. It will run for 600km up to Olympic Dam and other townships overseen by BHP, and incorporate a 260ML desalination plant at Cape Hardy. BHP and other private companies will be funding partners with the SA government, with an initial $200 million to $300 million put forward for early investigations and a completion date for the project of 2028. Developers Genex has joined Japan’s J-Power to develop one of Australia’s largest photovoltaic sites, at the Bulli Creek Solar Project in Queensland, which will provide 2gW. PCL Construction has completed the first stage with Arup announced as engineers and a completion date for the entire project of 2026. Also in Queensland, Fortescue Energy’s Gladstone Electrolyser Facility and PEM50 project will establish Gladstone as a renewable energy hub. PEM50 will provide 50mW year when completed with the facility providing electrolysers, a technology for producing low-emission hydrogen from electricity. The entire project is said to have cost $1 billion with completion slated for PEM50’s first stage in 2025 and then in 2028. Further west is the infamous Sun Cable project at Powell Creek in the Northern Territory. After Sun Cable went into voluntary administration, Michael Cannon-Brookes’ Grok Ventures purchased the company and plans to continue the Australian ASEAN Power Link project to set up a solar project and then transmission cables to Darwin 600km away and Singapore 4300km away.
June / July 2024 – 17
Greenfield
AUSTRALIAN GREENFIELD DREAM ‘NEEDS REIMAGINING’
Author: Clare Burnett Urban Developer
Legacy Property has launched projects in Gledswood Hills, The Ranges (pictured) and a 320-lot site—5500 people are registered for the latter.
Greenfield developers are taking a glass-half-full approach to the demands in the sector, according to leading industry figures.
tracking upwards. “[Infrastructure like that surrounding] Western Sydney Airport is a beacon for development and buyer appetite,” Staedler says. Outside metropolitan areas, places such as Wollongong are experiencing “exceptionally high prices” given borrowing capacities. Newcastle, just two hours from Sydney, is faring a little better. “There we have an affordable price point for first time buyers particularly to get into, and Newcastle is probably the one that’s been the most speedy through the market over a 12 month period. And that’s really due to the affordability equation.” Sheargold managing director of communities Michael Sheargold says that the decline in first-time home buyers has been glaring. “The first-time home buyer market is down dramatically due to the whole issue of getting finance, so our market is shifting towards upsizers and downsizers,” he says. Hyder agrred, saying that this was not necessarily a bad thing— although it would have an impact on home prices overall as demand continues to skyrocket. “[What this means is] that the upgrade market is very strong. As a developer, we were very excited, 45 per cent of our enquiries have been from the upgrader market and they can pay higher prices.”
“How many businesses in the world can say we have an excess number of buyers for our product, to the point where we cannot meet the market?” Legacy Property chief executive officer Matthew Hyder told The Urban Developer Sydney Residential Development Summit this month. “Yes, it’s cyclical. Of course approvals are a nightmare in New South Wales. But if you’re a long-term developer and you have resilience and you’re well capitalised, I just cannot think of a better way to spend your time at the office.” But pressures—from councils to rezoning, interest rates on buyers and builders, fuel costs and more—are clearly making an impact. Data from the Australian Bureau of Statistics showed that in 2023 work started on just 163,285 new homes, marking a 10.5 per cent decline on the previous year. One of the biggest areas affected was new-build greenfield homes. That’s not to say the end of greenfield is nigh, RPM group manager for research and data Michael Staedler says. “There is a huge role that both detached housing and townhouses need to play across Sydney, because not everyone wants to live in apartments. We really have to have a diverse offering,” he says. Changing buyer demographics In NSW, the north-west and south-west of Greater Sydney are
18 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
But things are looking brighter in the first home buyer space too, says Staedler. “We’re seeing a key level of stability come back into the market in the last few months,” he says. “We expect that to continue in the next couple of months and then get a bit of a spike in July and August when the tax rates come in.” Despite this potential return of confidence, something will have to give, and the consensus is that lot sizes have to change. “Households are looking at their budget and saying what am I going to give up on, am I giving up on the extra bedroom and extra living space? Or am I going to give up on a bit of land? And that’s really where the market has shifted,” Staedler says. AVJennings chief executive Phil Kearns says it’s a readjustment of expectations, for developer and buyer. “Everyone would like a 600sq m lot, but the reality is that’s not what people can afford, and you have to deliver what they are likely to be able to afford [based on] borrowing capacity.” CHALLENGES FOR DEVELOPERS As Rise Projects recently found out, planning issues and dealing with councils, particularly in the regions, can be troublesome. “I think councils get a lot of blame,” Hayder says. “They deserve some to blame. But in a lot of ways it is the state referral agencies [that are holding things up]. “We have a site, 1222 homes in Penrith, where we have full agreement from the council and from the NSW Department of Planning, everyone involved, that this project is absolutely exactly what [the area] needs. We haven’t had one bit of objection the entire time. “It still took five years and three months to get it rezoned.
“Everyone can be in agreement and it’s just red tape that exists in the planning process. It just takes a tremendous amount of resilience.” Kearns says that this leads to a situation where developers are landbanking. “We talk about hanging on to it, and you will get gains down the track in terms of price increases, but you have got to have a decent sized balance sheet to be able to sit on 750 lots for a long period of time,” he says. “That’s a lot of capital tied up. So where do I most effectively put my capital? If I’ve got to sell a site here or there … then that’s what I’ll do.” Sheargold says that these challenges could provide major opportunities.
The ABS says 23,597 new private houses commenced in the final quarter of 2023, a decline of 14.9 per cent on the same period the previous year.
“The next five to 10 years is going to be a really good time for us if we can see some of these planning issues through ... the best areas to try and buy obviously, outskirts of Sydney, Melbourne, and Brisbane. And they’re the hardest places to buy. We’re just still being conservative with our capital, not rushing out to buy anything.” Staedler says that the Australian dream is still in place “but it needs to be reimagined again.” “The three or four-bedroom house on a 500sq m block isn’t feasible, particularly in Sydney. It is a townhouse. It’s a small level product. It’s an apartment in Western Sydney. “There’s no silver bullet. It’s social housing, affordable housing, it’s build-to-rent, it’s private and public collaboration that needs to be done.”
Sheargold, founded in 1963 by Roy Sheargold, has worked on 70 projects across the southern half of NSW.
June / July 2024 – 19
MARKET MOVES
VIC
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
A private purchaser acquired a 29,825 sqm industrial asset reflecting a sharp yield of 2.49%. Tenanted by Australia-wide transport solutions company, Punjab Roadtrains, the asset has a 128-metre street frontage and a circa 8.4% site coverage. An industrial facility in Melbourne's West has changed hands after an off-market campaign managed by AND Property's Ricardo Cappelletti and Bryce Pane, with the final sale price reflecting a sharp yield of 4.03%. The developer of the brand-new Elsternwick Village mixed-use development has successfully offloaded the asset, reflecting a yield of 7.7%. The asset came leased to global fitness brand Anytime Fitness, holding a rental income of $402,000 plus GST. A single-level café with production space was sold while it was being prepared for market. The property boasts a prime location with 46m* of street frontage along Weston Street, between bustling Lygon Street and vibrant Sydney Road.
V: 165-169 Fitzgerald Road Pty Ltd. P: Private Purchaser
1-23 Banfield Court, Truganina
$20.4 million
CBRE's Todd Grima & Tom Hayes
13-17 Jessica Way, Truganina
V: Private Vendor P: Foresite Group
AND Property's Ricardo Cappelletti and Bryce Pane
$10 million
14 Ripon Grove, Elsternwick
V: Developer P: Private Local Investor
Aston's Jeremy Gruzewski and Joshua Colosimo
$5.2 million
48-54 Weston Street, Brunswick
$6.2 million
P: Brunetti Oro
CVA's Ian Angelico
113 Lygon Street, Brunswick East
A 150sqm building occupied by multi-store tenant Tips and Toes sold with a brand-new five-year lease, on a 152sqm site located in the absolute prime trading section of the strip.
Fitzroys’ Lewis Waddell and Ervin Niyaz
$1.3 million
NSW
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
Centuria Capital Group has offloaded, the Biomed Building, an office asset located a 1 Central Avenue. The final sale price reflects a 150% capital appreciation over Centuria's eight years of ownership. The Biomed Building is over 97% occupied, with the anchor tenant being The University of Sydney.
1 Central Avenue, South Everleigh
V: Centuria P: Private Investor
Rebus Property's Scott Timbrell
$103 million
246-250 Sheridan Street, Gundagai
A New South Wales-based private investor has purchased Woolworths Gundagai following a sales campaign managed by Jones Real Estate's Paul Jones and Tim Spargo.
V: Private Vendor P: Private Investor
Jones Real Estate's Paul Jones and Tim Spargo
$7.2 million
101-107 East Street, Narrandera
Coles Narrandera was purchased by a Melbourne-based private investor, the asset came 100% leased to Coles and holds a base rental income of over $464k.
Jones Real Estate's Paul Jones and Tim Spargo
V: Private Vendor P: Private Investor
$6.1 million
V: Jamie and Gina Fitzgerald P: Syndicate led by local Steve Harding and business partner Scott Still
Hospitality industry veterans Jamie and Gina Fitzgerald have successfully offloaded The Paragon Hotel as they look to consolidate their portfolio to focus on their primary hotel venue, The Woolpack Hotel.
38 Perry Street, Mudgee
JLL's Greg Jeloudev and Edward Browne
Undisclosed
309 Princes Highway, Carlton
A 562 sqm two-storey mixed-use freehold property in South Sydney with redevelopment potential has sold before auction following strong buyer demand during the sales campaign.
V: Jemag Pty Ltd P: Local Investor
Knight Frank's Adam Droubi and Anthony Pirrottina
$2.12 million
Knight Frank's James Masselos, Jessen O’Sullivan and Andrew Harford
36-38 Wentworth Avenue, Surry Hills
A commanding retail and commercial freehold property positioned at the gateway of Sydney’s CBD has sold in an off-market transaction for the first time in 27 years.
Undisclosed
Private
Owners Trevor Morgan and Di Burcham successfully offloaded the Ten Dollar Town Motel & Larsen's Restaurant, which holds an over 95% occupancy level and a current DA Approval for 7 additional suites.
V: Trevor Morgan and Di Burcham P: Private Investor Syndicate
Corner Of Mayne & Medley Street, Gulgong
JLL's Greg Jeloudev and Edward Browne
Undisclosed
Knight Frank's Demi Carigliano and James Masselos in conjunction with Clint Ballard of Sotheby’s International Frank’s Demi Carigliano, Anthony Pirrottina, Alex Guilfoyle and commercial buyers’ agents Stephen Grant and Will Dawson of The Grant Group.
313 Bronte Road, Waverley
An apartment block and two townhomes on a 699.3 sqm block at 313 Bronte Road have sold in one line.
$9.25 million
V: Danny Caretti
An office building in Sydney’s south has sold to an owner-occupier in an off-market deal. The property at 633 Princes Highway, known as the Leader Newspaper Building, consists of a 1,532 sqm four-storey building with 1,010 sqm of net lettable area and a car park on a 563 sqm site. A property almost directly across the road from the Dulwich Hill train station and light rail station sold to a local developer. The 430 sqm site has development approval for 29 self-contained studio apartments, four large common living areas, a rooftop courtyard and a single-level basement car park for eight vehicles.
633 Princes Highway, Rockdale
V: Private Investor P: Owner Occupier
$4.5 million
14 Dudley Street, Marrickville
V: Foxcorp Group P: Local Developer
Knight Frank's Adam Droubi and Anthony Pirrottina
$3.43 million
20 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
WA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
The Riverton Shopping Centre has been offloaded with the final sale price reflecting a yield of just over 7%. The centre came fully leased to a mix of tenants, including IGA, Wizard Pharmacy, Firewood Café & Restaurant and Willetton News, among the 9 specialty stores. just the second neighbourhood centre to transact in WA in 2024. After purchasing Dockland's The Four Points by Sheraton Hotel in February, Hiap Hoe Limited has continued expanding its Australian hotel portfolio with the acquisition of Perth's The Great Eastern Motor Lodge. A US-based investor has made their first foray into the Australian hotel market with the purchase of the Flag Motor Lodge. The Flag Motor Lodge occupies approximately 9,865 sqm of freehold land, holding 116 rooms, a restaurant, a swimming pool, and generous parking. Development WA, the State Government’s central land and development agency, has purchased one of Henderson’s largest waterfront holdings. The 4.63ha waterfront complex comprises 12,740sqm of existing building improvements, 140 metres of water frontage, a sea-bed licence and an established slipway launch structure.
V: Private (Speculated Elanore Investors)
JLL's Nigel Freshwater and Sean Flynn
$9 million
189 High Road, Riverton
81 Great Eastern Highway, Rivervale
JLL's Andrew Langsford and Sean Flynn
$40 million
P: Hiap Hoe Limited
129 Great Eastern Highway, Rivervale
JLL's Andrew Langsford and Sean Flynn
$17 million
P: US-Based Investor
49-53 Clarence Beach Road, Henderson
V: Private Owners P: Development WA
CBRE’s Jarrad Grierson and Derek Barlow
$51 million
SA
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
CBRE’s Sandro Peluso, Jimmy Tat, Marcello Caspani-Muto and Rhyce Scott
2-8 Botany Drive, Golden Grove
A Victoria-based investor has purchased a South Australian childcare centre, marking the largest childcare transaction in the state since 2022.
$8 million
P: Victorian-Based Investor
Lot 16 & 17 Hull Court, Lonsdale
A highly specialised purpose-built asset featuring 10 loading bays, a full-length canopy and 4 coolrooms that sits within an established industrial precinct sold.
V: Private Vendor P: Private Purchaser
Colliers' Paul Tierney and Tom Barrett
$1.85 million
QLD
VENDOR/ PURCHASER
DESCRIPTION
AGENCY
SALE $
An 18-year-old strata unit in the Willawong industrial area sold setting a record for one of the highest rates per square metre in the area, highlighting significant demand for industrial units in Brisbane’s southern corridor.
1/87 Gardens Drive, Willawong
$1.1 million
P: Private investor
Colliers' Corey Allerton
V: Enhance Property Investments P: Private Sydney-Based Investor
11 Commercial Drive, Springfield
A private Sydney-based investor has purchased a near-new freestanding Club Lime gym that was developed by Enhance Property Investmetns in 2023.
CBRE’s Nick Kennedy and Harrison Coburn
$5.35 million
4 Traders Way, Currumbin
An industrial property in the Gold Coast was purchased by a local investor post-auction, reflecting a tight 3.27% yield.
RWC's Ryan Langham and Damon Walker
$3.3 million
P: Local Investor
Australian hospitality group TPG Hotels has acquired the freehold interest in the Pacific Hotel Cairns, with the final sale price reflecting an initial yield of 4.3% and a stabilised yield on a three-year basis of 7.25%. A hotly contested 40-ha beachfront parcel at Noosa North Shore sold under the hammer. The property has roughly 450m of absolute beachfront and a cleared grass area on the eastern portion of the site, fronting the beach. The freehold title is zoned rural residential and can be accessed via a bitumen-sealed road from the North Shore Ferry. A 2,300 sqm purpose-built integrated medical and childcare facility has sold off-market for $15 million to a Victorian-based investor. ‘The Hub’ is anchored by Kids Early Learning Centre, a 112-place childcare centre as well as tenants Café 63 and Prime Performance Physiotherapy all on a 6,459 sqm site. A 2.48-hectare riverfront site in Brisbane’s inner southwest, with the purchaser planning a high-quality retirement living and integrated care development centred around the refurbished heritage-listed Verney House on the site.
43 Esplanade, Cairns City
V: Pacific Hotels Group P: TPG Hotels
CBRE Hotels’ Wayne Bunz and Hayley Manvell
Undisclosed
RWC Special Projects agents Mark Creevey and Tony Williams in conjunction with RWC Noosa and Sunshine Coast agents Paul Butler and Paul Forrest
V: Glenn O’Kearney of GT Advisory & Consulting and Tim Elliott of Bell Legal as statutory trustees
337 Teewah Beach Road, Noosa North Shore
$16.2 million
41 Queen Street, Goodna
Colliers' Nick Wedge and Chris O’Driscoll
$15 million
P: Victorian-Based Investor
19 Bell Terrace, Graceville
V: Bethany Christian Care P: RetireAustralia
Knight Frank's Christian Sandstrom and Sam Biggins
Undisclosed
June / July 2024 – 21
Auction Hub
Our top picks of the latest commercial auctions from around the country
43 Rose Street, Essendon, VIC, 3040
99 High Street, Prahran, VIC, 3181
2 Elkhorn Avenue, Surfers Paradise, QLD, 4217
39 Longueville Road, Lane Cove, NSW, 2066
430 Little Collins Street, Melbourne, VIC, 3000
22 – June / July 2024
THE PROPERTY DEVELOPMENT REVIEW
Upcoming Commercial Auctions
Address
Property Type
Auction Time
Auction Location
Agency
Est Income.
230 Beamish Street, Campsie, NSW, 2194
Colliers
Retail
$167,943 p/a
20 Jun 2024 12:00PM
In-room Colliers Sydney Head Office
43 Rose Street, Essendon, VIC, 3040
Gross Waddell ICR Retail
Property Vacant 20 Jun 2024 12:00PM
On-site
99 High Street, Prahran, VIC, 3181
Colliers
Retail
$74,987 p/a
20 Jun 2024 01:00PM
On-site
430 Little Collins Street, Melbourne, VIC, 3000
Jones Real Estate | Colliers
Retail, Hotel/ Leisure
$629,000 p/a 25 Jun 2024 12:30PM
On-site
28 Hillcrest Road, Devonport, TAS, 7310
Burgess Rawson Industrial, Other $271,593 p/a
25 Jun 2024 10:30AM
In-room Yallamundi Rooms, Sydney Opera House
33 Margaret Street, Southport, QLD, 4215
RWC Burleigh Group
Industrial
Contact Agent
28 Jun 2024 10:00AM
Online Auction
135 Union Street, Lismore, NSW, 2480
Burgess Rawson | Colliers
Retail
$335,000 p/a 25 Jun 2024 10:30AM
In-room Yallamundi Rooms, Sydney Opera House In-room Langham Hotel
2 Elkhorn Avenue, Surfers Paradise, QLD, 4217
Amir Prestige
Retail
Property Vacant 1 Jul 2024 11:00AM
39 Longueville Road, Lane Cove, NSW, 2066
Savills
Offices, Retail
$106,153 p/a
2 Jul 2024 10:30AM
Contact Agent
27 Greg Chappell Drive, Burleigh Heads, QLD, 4220
RWC Burleigh Group
Industrial
$167,305 p/a
4 Jul 2024 12:00PM
Contact Agent
Ready to inspect, invest, or just take a look around? Visit commercialready.com.au
June / July 2024 – 23
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140Powered by FlippingBook